Thread by @OnrampAcademy

Between a recently proposed bill and contradictory comments from CFTC, IRS, & SEC reps, cryptoasset regulation continues to be a hot & confusing topic of discussion amongst many investors.

Time for a thread 🧵👇

Per their official statements:

To the IRS, cryptoassets are property
To the SEC, cryptoassets are not securities
To the CFTC, cryptoassets are commodities

While this is seemingly vague, investors DO have all the guidance they need to get started.👀👇

academy.onrampinvest.com/advisor-resour…

In February of 2021, the SEC put out a risk alert that stated although cryptoassets aren’t considered securities, the asset class presents unique risks that advisers should account for & suggested best practices for those implementing cryptoassets within their practice.

In a recent statement, CFTC Commissioner Stump called it a “grossly inaccurate oversimplification” that cryptoassets are either securities or commodities that fall under CFTC jurisdiction

coindesk.com/cftc-commissio…

According to Stump, jurisdiction over cryptoassets wouldn’t fall under the CFTC regardless of whether they’re categorized as a commodity or security; the CFTC’s authority is limited to futures & derivatives.

SEC Chair Gensler recently stated the SEC should be responsible for regulating a majority of the cryptoasset markets (including both spot markets and exchanges)

Following Gensler's comments earlier this month, CFTC Commissioner Quintenz tweeted that the SEC should NOT have authority over “pure commodities or their trading venues," INCLUDING "crypto assets."

coindesk.com/cftc-commissio…

Adding to the confusion, former CFTC Chairman Christopher Giancarlo followed this up by prompting the CFTC to create "sensible cryptocurrency regulation" , opining that they are the only jurisdiction with the experience necessary to regulate the market.

BUT WAIT, WE'RE NOT DONE.

Even the @HouseAgGOP chimed in on the Twitter action, encouraging Congress to step in

"#crypto is bigger than the SEC"

https://twitter.com/HouseAgGOP/status/1423040474504433664?s=20

Did you know that in April 2021, the U.S. House of Representatives passed the bipartisan Eliminate Barriers to Innovation Act of 2021?

The act requires the SEC & CFTC to form a joint working group on digital assets or, as we prefer to call them, cryptoassets.

You're probably wondering, what does this entail?

By creating a joint working group / task force, the SEC & CFTC can explore how to collectively leverage their current jurisdiction when it comes to the crypto economy.

Suffice it to say, there's a reason that many investors are confused about the current & future reg environment of cryptoassets: too much noise.

The SEC & CFTC must come together to provide the investment community with the definitive guidance necessary for widespread adoption.

Want to learn more about the regulatory environment of cryptoassets, ways that FAs can invest in cryptoassets on behalf of clients in a compliant manner, and more?

Come #EducateBeforeYouAllocate by signing up for your free trial today at academy.onrampinvest.com